AVM Warranty Guidelines:
Available on First Mortgage Purchase Loans, Second Mortgage Loans (or other lien positions), Home Equity Lines of Credit and Refinance Mortgage Loans.
Maximum Loan Amount: $1,000,000
Minimum Borrower’s Credit Score: 580
Loan to Value Limits:
- Maximum LTV for 1st Liens – 100 %
- Maximum Combined Loan To Value not to exceed 100%
- Maximum Guaranteed Loss Amount: $100,000 per valuation
- Loan to value must be calculated using the maximum credit line available
Eligible Claims:
- 10% variance (ie: AVM value must be more than 10% of retro-appraisal value)
- Warranty pays the lesser of:
- AVM error up to $100,000 per valuation, or Actual loss sustained, including reasonable expenses, or Original loan amount
- No annual aggregate limit or deductible on coverage
Claim Process:
- Submit retro-appraisal within 60 days of loss
- Residential Properties of 4 units or less
- Primary Residences, condominiums, and second homes
Example of Claim:
| Loan Amount $ 180,000 |
AVM Value $200,000 |
| Distressed Value $150,000 |
Retro-Appraisal $175,000 |
| ________________________ |
________________________________ |
| Loss $ 30,000 |
AVM Valuation Error $25,000 (12.5%) |
Claim would result in payment of the AVM Valuation Error of $25,000 (plus expenses).
So instead of a $30,000 loss, the loss is reduced to $5,000 with the Guaranteed AVM. |
